Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of regulatory oversight of debt purchasing companies in ensuring that credit reference data is updated promptly following the completion of an Individual Voluntary Arrangement.

The Financial Conduct Authority (FCA) is responsible for the regulation of firms carrying out debt purchasing activities in respect to credit or consumer hire agreements. The FCA expects that these firms treat customers fairly, including those in vulnerable circumstances.

Under the FCA’s Consumer Duty, firms are required to take steps to identify and respond to signs of vulnerability, support customers to disclose their needs, and make them aware of available assistance.

In March 2025, the FCA published examples of good and poor practice, identifying areas for improvement in how firms deliver good outcomes for customers in vulnerable circumstances.

When an Individual Voluntary Arrangement (IVA) is completed, it is the responsibility of the Insolvency Practitioner to inform Credit Reference Agencies (CRAs) of the completion. Additionally, debt purchasers who report to CRAs are expected to update the credit information they provide to reflect payments made towards debts that formed parts of the IVA.

CRAs also receive public data on IVAs from the Individual Insolvency Register, which is maintained by the Insolvency Service, and retain this information for six years from the date the IVA was approved.